Page:United States Statutes at Large Volume 117.djvu/1605

SEC. 1008. USE OF THE DEFENSE MODERNIZATION ACCOUNT FOR LIFE CYCLE COST REDUCTION INITIATIVES.

(a)

FUNDS AVAILABLE FOR DEFENSE MODERNIZATION ACCOUNT.—Section 2216 of title 10, United States Code, is amended— (1) by striking subsection (c); (2) by redesignating subsection (b) as subsection (c); and (3) by inserting after subsection (a) the following new subsection (b): ‘‘(b) FUNDS AVAILABLE FOR ACCOUNT.—The Defense Modernization Account shall consist of the following: ‘‘(1) Amounts appropriated to the Defense Modernization Account for the costs of commencing projects described in subsection (d)(1), and amounts reimbursed to the Defense Modernization Account under subsections (c)(1)(B)(iii) out of savings derived from such projects. ‘‘(2) Amounts transferred to the Defense Modernization Account under subsection (c).’’. (b) START-UP FUNDING.—Subsection (d) of such section is amended— (1) by striking ‘‘available from the Defense Modernization Account pursuant to subsection (f) or (g)’’ and inserting ‘‘in the Defense Modernization Account’’; (2) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and (3) by inserting after ‘‘purposes:’’ the following new paragraph (1): ‘‘(1) For paying the costs of commencing any project that, in accordance with criteria prescribed by the Secretary of Defense, is undertaken by the Secretary of a military department or the head of a Defense Agency or other element of the Department of Defense to reduce the life cycle cost of a new or existing system.’’. (c) REIMBURSEMENT OF ACCOUNT OUT OF SAVINGS.—(1) Paragraph (1)(B) of subsection (c) of such section, as redesignated by subsection (a)(2), is amended by adding at the end the following new clause: ‘‘(iii) Unexpired funds in appropriations accounts that are available for procurement or operation and maintenance of a system, if and to the extent that savings are achieved for such accounts through reductions in life cycle costs of such system that result from one or more projects undertaken with respect to such systems with funds made available from the Defense Modernization Account under subsection (b)(1).’’. (2) Paragraph (2) of such subsection is amended by inserting ‘‘, other than funds referred to in subparagraph (B)(iii) of such paragraph,’’ after ‘‘Funds referred to in paragraph (1)’’. (d) REGULATIONS.—Subsection (h) of such section is amended— (1) by inserting ‘‘(1)’’ after ‘‘COMPTROLLER.—’’; and (2) by adding at the end the following new paragraph (2): ‘‘(2) The regulations prescribed under paragraph (1) shall, at a minimum, provide for— ‘‘(A) the submission of proposals by the Secretaries concerned or heads of Defense Agencies or other elements of the Department of Defense to the Comptroller for the use of Defense